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A Texas employment contract is a binding agreement between a business and its employee that outlines the terms and conditions of the individual’s employment. It spells out what was agreed upon when the employee accepted the position, including their wage, job responsibilities, work schedule, benefits, and vacation days. By establishing these terms in writing, the parties create a strong foundation for their working relationship.
Employment contracts can specify a date when the employee will automatically be discharged from their position. Alternatively, the term of employment can be “at-will,” meaning the employee will work perpetually until either they or their employer decides to end the contract.
Contents |
Types (2)
Independent Contractor Agreement – Allows a freelancer to provide services to their client.
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Subcontractor Agreement – Used by a contractor to hire a subcontractor to complete a specific task in contribution to a larger project.
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Laws
- Labor Statutes: Labor Code
- Definition of Employee: § 21.002(7)
- Minimum Wage: $7.25/hr (§ 62.051)
- Overtime: Federal min. – one and a half (1.5) times the employee’s standard wage (29 C.F.R § 778.107).
- Record Keeping: Payroll records must be preserved for four (4) years (§ 815.106(i)).
At-Will Employment
Permitted? Yes, at-will termination is legal in Texas, with some exceptions. For example, at-will employment cannot be terminated for any of the following reasons:
- Discrimination against age, race, nationality, etc.;
- Attempting to file a claim for workers’ compensation;
- Refusing to commit a criminal act;
- Jury duty;
- Being called to serve in the military;
- Joining a union.
Other circumstances apply; this article contains a comprehensive list of exceptions where at-will termination is unlawful.